Ethereum
Here’s Where and Why ETH’s Price Rally Could Lose Control and Fall Below $2,500
Cryptocurrency markets are experiencing massive turbulence as Bitcoin Price crashed below $53,500 in the early hours of trading. Massive transfers from Mt. Gox cold wallet and the address held by the German government have created a “panic situation” among traders. Mainly because both have either $40,000 or $47,000 worth of BTC, a huge selling pressure is expected to be felt in the space soon. However, Ethereum continues to hold above the crucial support zone, which is considered the last point of defense before the major crash begins.
Futures markets, which shed light on the market trend, suggest that the ETH Price remains in a bullish range. Open interest or OI is a tool that monitors the total number of open positions in a contract. The latest pullback caused the price to drop to near $2,800, but ETH’s OI suggests that a major flush has yet to occur. Therefore, bearish clouds could intensify in the coming days, causing massive destruction.
Source: X
ETH’s OI continues to consolidate regardless of the current market momentum. However, the bearish clouds do not seem to be clearing, which could further push the price below $2,700. This move is expected to drag the OI below 2 million tokens, which could trigger a massive liquidation as the outstanding derivative contracts could be closed. Currently, all open interest from the Ethereum ETF approval has left the market, representing $3.5 billion in positioning. Therefore, levels are likely to decline if the price fails to hold the crucial support at $2,800.
Currently, Ethereum price is struggling to reclaim the crucial support zone between $2,868 and $2,902. A daily close in or above the range could prevent Ethereum from breaking above the “thin ice” and initiate a decent recovery. However, if the FUD game continues to persist in the markets, BTC price is likely to head towards crucial support at $52,000, sending Ethereum (ETH) price below $2,700 over the weekend.